1 When the federal government uses taxation and spending actions to stimulate the economy it is conducting fiscal policy incomes policy monetary policy employment policy 2 Refer to the graph. What combination would most likely cause a shift from AD1 to AD3? Increases in taxes and government spending Decrease in taxes and increase in government spending Increase in taxes and decrease in government spending Decreases in taxes and government spending
1 When the federal government uses taxation and spending actions to stimulate the economy it is conducting fiscal policy incomes policy monetary policy employment policy 2 Refer to the graph. What combination would most likely cause a shift from AD1 to AD3? Increases in taxes and government spending Decrease in taxes and increase in government spending Increase in taxes and decrease in government spending Decreases in taxes and government spending
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter18: Debates In Macroeconomics Over The Role And Effects Of Government
Section: Chapter Questions
Problem 1WNG
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1 When the federal government uses
fiscal policy
incomes
monetary policy
employment policy
2 Refer to the graph. What combination would most likely cause a shift from AD1 to AD3?
Increases in taxes and government spending
Decrease in taxes and increase in government spending
Increase in taxes and decrease in government spending
Decreases in taxes and government spending
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